Entering content frameProcedure documentationReconciling Accounts for the Material Ledger in Different Currencies and Valuation Categories Locate the document in its SAP Library structure


You must perform this step if one of the following is true:

Make sure that no material postings are necessary during the reconciliation in the relevant valuation area. The company code for inventory accounting is blocked during reconciliation.

When you convert the data at the beginning of a new fiscal year, carry the balances for general ledger accounts forward by choosing Accounting ® Financial Accounting ® General Ledger then Periodic Processing ® Closing ® Carry Forward ® Balances. You can find documentation for this program under Help ® Application help.


  1. Choose Accounting ® Controlling ® Actual Costing/Material Ledger ® Environment ® Production Startup ® Reconciliation with Bal.Sht Acct. in FI.
  2. Enter the company code.
  3. Enter the account where offsetting entries should take place in order to deal with differences in foreign currencies in the material stock account, and to reconcile the accounts of Financial Accounting with the accounts of Materials Management.

The account should fulfill the following prerequisites:

Do not enter a material stock account. If you enter one, you will lose reconciliation between subledger accounting for the material and G/L accounting.

  1. Choose the method of processing.
  2. Choose Execute.

You receive a list with a comparison of the inventory values from Materials Management (subledger accounting) and from Financial Accounting (G/L accounting).


The system does the following:

  1. Aggregates the inventory values in all currencies of Materials Management at the account level and compares them with the balance sheet account balances in Financial Accounting
  2. Adjusts the balance sheet account balances in FI in the other currencies (and not the local currency) to the input from Materials Management, and posts differences to the adjustment account.
  3. Generates an accounting document for the adjustment posting


There is no reconciliation for differences between Materials Management accounts and Financial Accounting accounts in the company code currency, because this inconsistency must first be eliminated. In this case, contact SAP.

Leaving content frame